102,000 110,000 Waterways Continuing Problem (This is a continuation of the Walerways Problem [rom Chaplers 1 Through 9.) WCP.10 Waterways Corporation has recently acquired a small manufacturing operation in British Columbia that produces one of its more popular items. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget prepared by the plant was incomplete, Jordan Leigh, Waterways CFO, was sent to B.C. to oversee the plant's budgeting process for the second quarter of 2023. Jordan asked the various managers to collect the following information for preparing the second-quarter budgel. Sales Unit sales for February 2023 90,000 Unit sales for March 2023 Expected unit sales for April 2023 Expected unit sales for May 2023 115,000 Expected unit sales for June 2023 Expected unit sales for July 2023 Expected unit sales for August 2023 Average unil selling price S15 Based on the experience in the home plant, Jordan has suggested that the B.C. plant kocp 10% of the next month's unit sales in ending inventory. The plant has contracts with some of the major homo hardware giants, so all sales are on account; 50% of the accounts receivable is collected in the month of sale, and the balance is collected in the month after sale. This was the same collection pattern as the previous year. The new plant has no bad debts. Direct Materials The combined quantity or direct materials consisting of melal, plastic, and rubber) used in each unit is 1.1 kg. Melal, plastic, and rubber logether amount ! $1.50 per kg. Inventory of combined direct materials on March 31 consisted of 12,155 kg. This plant likes to keep 10% of the materials needed for the next month in its ending inventory, Filly percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts payable on March 31 will total $120,600. 120,000 135.000 160,000 Direct Labour Labour requires 15 minules per unit for completion and is paid al an average rale of $18 per hour. Manufacturing Overhead Indireci malerials $0.30 per labour hour Indirect labour $0.50 per labour hour Utilities $0.45 per labour hour Maintenance $0.25 per labour hour Salaries $42,065 per month Depreciation $16,800 per month Property taxes $2,400 per month Insurance $1,200 per month Janitorial $2,600 per month Selling and Administrative Variable selling and administrative expenses per unit are $1.62. Advertising $15.000 a month Depreciation $2,500 a month Insurance $1,400 a month Other fixed costs $3,000 a month Salaries $72,000 a month Other Information The cash balance on March 31 will be $100,500, bul Walerways has decided it would like to maintain a cash balance of at least $500,000 beginning on April 30. The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1,000 increments at 3% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month. In May, $845,000 of new equipment lo updale operations will be purchased. Three months' insurance is prepaid on the first day of the first month of the quarter. Instructions For the second quarter of 2023: a. Prepare a sales budget. b. Prepare a schedule for expected cash collections from customers. c. Prepare a production budget. d. Prepare a direct materials budget. e. Prepare a schedule for expected payments for materials purchases. f. Prepare a direct labour budget. g. Prepare a manufacturing overhead budget. h. Prepare a selling and administrative expenses budget. i. Prepare a cash budget. Include supporting calculations